In Sales Negotiations, It Pays to Stand Your Ground on Price

As a salesperson, you have no doubt been taught in sales negotiation training that, for most buyers, price is not the main consideration. In fact only 20-30% of buyers are truly persuaded by cost. And yet, again and again, sellers lower their price in the last stages of the sales cycle in a desperate attempt to secure the deal. Instead, in most scenarios, you should stand your ground on price and not leave money on the table.

One way to determine if price is paramount is to figure out what matters most to the buyer you are dealing with.

1. Value.  These buyers will pay more to get more. They focus on the long-term return and business impact of your solution…not the price.
2. Relationship.  Some buyers care more about who they buy from than the cost. They consider their provider as a partner they trust to bring the best quality solutions.

Know the motives of your buyer and you will be better able to withstand pressure on price.  Then, if they only care about price and consider your solution a commodity, you can determine when it is worth it to walk away.